On Wednesday, the S&P 500 remained relatively unchanged as investors awaited the Federal Reserve’s latest policy decision.
Intel experienced a more than a 3% increase in stock price following news that the White House plans to grant the semiconductor company $8.5 billion in CHIPS Act grants. Additionally, Chipotle Mexican Grill saw a 5% surge after announcing a stock split.
Investors are eagerly anticipating the Federal Reserve’s rate decision, with expectations that the central bank will likely maintain current interest rates at the end of its two-day policy meeting. However, market participants will closely scrutinize the dot plot for indications of potential rate cuts, as many foresee the possibility of rate reductions beginning in June.
Concerns have surfaced regarding the recent uptick in inflation reports, with some speculating that this could lead to fewer rate cuts than currently forecasted by the markets.
Gargi Chaudhuri, Head of iShares Investment Strategy, Americas at BlackRock, shared insights stating, “Despite market expectations for nearly three rate cuts this year, the dot plot might reveal only two, particularly in light of recent higher-than-anticipated CPI readings.
A slight shift in the perspectives of certain FOMC members could result in this scenario, along with a revision towards higher 2024 dots potentially influencing growth and inflation outlooks.”
Source (CNBC)
